Costco Wholesale Corp. (NASDAQ:COST)

The analysis of the annual financial ratios reveals distinct trends in the company's asset and equity utilization over the observed periods.

Net Fixed Asset Turnover

This ratio exhibits a steady upward trend from 7.29 in 2020 to a peak of 8.49 in 2023, followed by a slight decline to 8.08 by 2025. The gradual increase until 2023 suggests improving efficiency in generating sales from fixed assets. The minor decline thereafter may indicate either an increase in fixed assets or a slight reduction in sales efficiency related to these assets.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

Incorporating operating leases and right-of-use assets yields a consistent increase from 6.48 in 2020 to 7.74 in 2023, with a modest decrease to 7.47 in 2025. This pattern mirrors the net fixed asset turnover trend but on a slightly lower scale, reflecting the impact of leasing assets on the turnover ratio. The data indicates enhanced utilization of leased assets up to 2023, with slight softness thereafter.

Total Asset Turnover

The total asset turnover ratio shows a continuous improvement from 2.94 in 2020 to 3.57 in 2024, before a minor dip to 3.50 in 2025. This consistent increase over the years highlights a better overall efficiency in using all assets to generate revenue. The slight reduction towards the final period might suggest marginally reduced sales relative to total assets or asset base growth outpacing revenue.

Equity Turnover

Equity turnover demonstrates notable volatility, rising from 8.93 in 2020 to a peak of 10.93 in 2021, then dipping to 9.49 in 2023. It rises again to 10.57 in 2024 before falling to 9.25 in 2025. These fluctuations may reflect changes in equity levels or variations in revenue generation relative to shareholders' equity, indicating less stability in equity utilization compared to asset-related ratios.

Overall, the data suggests the company has generally improved its efficiency in utilizing both fixed and total assets to generate revenue across the period, with peak performance occurring around 2023-2024. However, the slight declines in recent periods warrant monitoring for potential shifts in asset management or revenue trends. Equity utilization appears less consistent, highlighting areas for further investigation regarding capital structure and revenue drivers.

The financial data reveals several notable trends over the analyzed periods. Net sales demonstrate consistent growth year over year, increasing from $163.22 billion in 2020 to $269.91 billion in 2025. This signifies a strong upward trajectory in revenue generation, reflecting expansion or increased market demand.

Property and equipment, net, including finance lease assets, also show a positive trend, rising steadily from $22.40 billion in 2020 to $33.40 billion in 2025. This indicates ongoing investment in fixed assets, possibly to support operational capacity or infrastructure enhancement.

Net fixed asset turnover, representing the efficiency of fixed assets in generating sales, increased from 7.29 in 2020 to a peak of 8.49 in 2023, indicating improved utilization of fixed assets during this period. However, it slightly declined thereafter, to 8.19 in 2024 and 8.08 in 2025. Although still robust, this mild decrease suggests a moderate reduction in asset efficiency relative to the previous peak, possibly due to the accelerated growth in asset base compared to sales growth in the latter years.

Net Sales

Consistent, substantial growth from 2020 to 2025, reflecting strong revenue expansion.

Property and Equipment, Net

Steady increase over the years shows continuous capital investment.

Net Fixed Asset Turnover

Improved asset efficiency until 2023, followed by a slight decline, indicating a recent trend towards relatively less efficient asset utilization.

Overall, the data suggests robust growth supported by ongoing capital investment, with efficiency gains in asset utilization that have somewhat moderated recently but remain at a high level.

The annual financial data reveals several key trends in the company's operational and asset management performance over the period from 2020 to 2025.

Net Sales

There is a consistent upward trend in net sales, rising from $163.2 billion in 2020 to $269.9 billion in 2025. This represents a substantial growth in revenue over the six-year period, indicating strong market demand and effective sales strategies.

Property and Equipment, Net

The net value of property and equipment, including lease-related assets, has steadily increased from $25.2 billion in 2020 to $36.1 billion in 2025. This growth suggests ongoing investment in physical assets and infrastructure expansion, which may support future sales growth and operational capacity.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, which measures how efficiently the company uses its fixed assets to generate sales, shows an initial increase from 6.48 in 2020 to a peak of 7.74 in 2023. However, after 2023, there is a slight decline to 7.47 by 2025. Despite this minor decrease, the ratio remains higher than the 2020 level, indicating improved asset utilization efficiency overall compared to the start of the period.

In summary, the company has demonstrated strong revenue growth accompanied by increased investment in property and equipment. The efficiency of asset use, as indicated by the net fixed asset turnover, improved significantly during the first part of the period but showed a modest decrease in the later years, which may warrant further monitoring to ensure sustained operational performance.

Net Sales

There has been a consistent upward trend in net sales over the periods presented. Starting at $163,220 million, net sales increased steadily each year, reaching $269,912 million in the latest period. This growth indicates strengthening revenue generation and an expanding sales base.

Total Assets

Total assets have shown a gradual increase from $55,556 million to $77,099 million over the time frame. While the asset base grew moderately, the pace of growth in assets is slower compared to net sales growth, suggesting improvements in asset utilization efficiency.

Total Asset Turnover

The total asset turnover ratio has generally improved, moving from 2.94 to around 3.5 over the years. This trend reflects an enhanced capability of the company to generate sales from its asset base. There was a slight dip in the most recent periods, but overall the ratio remains higher than at the beginning of the period under review.

Net Sales

Net sales displayed a consistent upward trend over the period analyzed. Starting at $163,220 million, sales increased each year, reaching $269,912 million by the final period. This steady growth indicates strong revenue expansion throughout the years.

Total Stockholders’ Equity

Total stockholders’ equity experienced some fluctuations but showed an overall increasing trend. It began at $18,284 million, decreased slightly to $17,564 million in the following year, then increased to $20,642 million and continued to rise significantly to $29,164 million by the last period, with a minor dip observed two periods before the end. This suggests the company strengthened its equity position over time despite some volatility.

Equity Turnover Ratio

The equity turnover ratio, which measures the efficiency of equity utilization in generating sales, showed variability across the years. It started at 8.93, peaked at 10.93, then saw some declines and rises without a clear long-term trend. The ratio dropped to 9.25 in the final year from a higher intermediate value of 10.57. These fluctuations suggest changing efficiency levels in equity usage that may reflect operational or financial strategy adjustments.